Zero Hedge: Janet Yellen is Joe Biden’s Treasury Secretary nominee. She claims to support “market forces” as the driver for the US dollar. What does that really mean in a practical sense?
Biden’s Treasury Secretary, Janet Yellen, is also a prior Fed Chair. I noted her Swiss Cheese Statements on the US Dollar.
“The United States doesn’t seek a weaker currency to gain competitive advantage. We should oppose attempts by other countries to do so.”
Yellen can make whatever swiss cheese statements she wants but how would a central bank act if it wanted to sink the dollar?
Steps to Weaken a Currency
- Cut interest rates
- Engage in massive QE balance sheet expansion
- Pledge to keep rates low indefinitely
- Pledge to ignore inflation and let it run hot to make up for alleged undershooting
- Encouraging more fiscal stimulus
The Jerome Powell Fed is five for five on doing the very things that would cause the dollar to sink and Yellen supports all of them. Read More